Demand for vegan shakes boosts revenues for Protein Works

Demand for vegan protein shakes has seen one Cheshire-based retailer grow revenues to more than £25m despite supply chain challenges and rising costs of raw materials.

Protein Works, a specialist online retailer of protein powders, snacks, supplements, and foods, has delivered a record-breaking year as the nation continues to get fit through healthy eating.

The YFM-backed company, which manufactures 95% of its products from its own 75,000 sq ft facility in Runcorn, saw revenues climb 45% to £25.6m, up from £17.6m in the previous year and has added 50 new people to the team.

Adjusted EBITDA increased by 36% to £2m and boss Mark Coxhead expects to deliver similar levels of growth in 2022 as the appetite for its vegan led products continues to accelerate.

Its brands include Vegan Wondershake, Ridiculous Vegan Bar, Whey Protein 360 and abnormal, its personalised meal replacement subscription service.

Speaking to TheBusinessDesk.com, founder Mark said: “You get a lot of fad diets, but vegan isn’t a fad. For people it’s a long-term lifestyle change.

“We’ve been working on vegan products for around eight years now so, we were way ahead of the curve in terms of identifying that and building a range that focuses on taste and texture.

“There’s been a lot of science around nutrition in a vegan diet but there hasn’t been a lot of science and innovation around taste and texture and that’s what we are focusing on which means our vegan shakes not only taste good but also taste like a dairy product. The demand has been phenomenal over the last 12 months.

“People want non-dairy products without compromising on taste.”

And it’s not just vegans who are buying, many customers want to also make small changes in their lifestyle.

“People are trying to improve their wellbeing and lifestyle with fundamental shifts that they can maintain,” said Mark.

“That means adding some vegan products into their diet.”

Mark Coxhead, a former director at MyProtein which was sold to THG in 2011, established Protein Works in 2012 with strong year-on-year growth.

The focus in 2022 includes growing its subscription service whilst also navigating supply chain challenges.

“There have been highs and lows of Covid,” he said.

“On the one hand, there has been a shift online and a change in consumer’s shopping behaviour, and that’s been great for us as the demand has never been higher but on the reverse of that there are massive supply chain issues with delays at the ports, demand outstripping supply of ingredients, border controls from Brexit have been challenging and so on. So, it’s got harder and harder to operate.

“The lead times to get materials is longer, there’s massive increase in costs so freight costs have gone up by 500% and the cost of raw ingredients have gone up by 300%.

“The Bank of England expects inflation to peak at 6% and I question this because what we’re seeing is massively more than that.

“The challenges are there, but it means we have to look at other ways to keep costs down by looking at operational efficiencies and introducing more innovation and digitisation within the manufacturing process.”

The business is also focusing heavily on what it calls its “technology driven innovation” platform.

Last May, the company broke into the personalised nutrition space with the launch of abnormal, a subscription service that provides a bespoke meal replacement.

Each customer receives a complete meal shake, tailored to their specific needs, based on a wide range of health and lifestyle touch points.

He said: “The nutrition market is evolving faster than ever and it’s vital we’re able to not only track in real-time customer trends, but to innovate at speed and at a granular level, to meet them.”

He added: “Technology sits at the heart of the business and drives decision-making at every step of the way. To succeed right now, a brand needs to create products that fit closely to what a customer is looking for.”